The Lufthansa Group has achieved its highest-ever quarterly revenue of 10.7 billion euros in Q3 2024, driven by robust summer travel demand.
The airline conglomerate posted an operating profit of 1.3 billion euros, with bookings continuing to surge into the fourth quarter. With bookings at a high over last year’s performance, it highlights the aviation sector’s strong recovery from previous challenges.
Strong Performance Amid Rising Costs
The Group’s revenue climbed 5% from last year’s 10.3 billion euros, fueled by increased flight operations and significant growth at Lufthansa Technik.
However, operating profit experienced a modest decline from 1.5 billion euros in 2022. This resulted in a 12.5% operating margin compared to the previous year’s 14.3%.
Higher costs across multiple sectors, including fees, maintenance, and staffing, contributed to this decline. Net profit settled at 1.1 billion euros, down from 1.2 billion euros in the same period last year.
Passenger Numbers and Capacity
The third quarter saw remarkable growth in passenger volume, increasing by 6% to over 40 million travelers. The airlines operated at 94% capacity, a significant jump from 88% last year. Overall, the Group achieved a record-breaking 88% load factor in August.
While European route yields remained relatively stable with only a minor 0.4% decrease, the Asia-Pacific region experienced a more substantial 14% decline in average yields.
The overall unit revenue (RASK) showed a modest decrease of 2.7%. However, rising operational costs, including increased fees and personnel expenses, led to a 4.5% jump in unit costs compared to the previous year.
Mixed Results Across Divisions
The passenger airlines division recorded an Adjusted EBIT of 1.2 billion euros, down from 1.4 billion euros last year.
Airline
Lufthansa Airlines specifically faced significant challenges, including delayed aircraft deliveries, which necessitated the continued operation of older aircraft.
Additional hurdles included higher location costs, increased staff expenses, and elevated compensation payments following flight irregularities.
Engineering
Meanwhile, Lufthansa Technik maintained steady performance with a 167 million euro profit, nearly matching last year’s 168 million euros. The engineering and maintenance arm benefited from increased global airline maintenance demands.
Cargo
Lufthansa Cargo showed notable improvement with a 38 million euro profit in Q3, up significantly from just 1 million euros in the same period last year. This was achieved despite this quarter typically being a slower season for air freight.
The cargo division has successfully adapted to market changes by redirecting capacity from transatlantic routes to the thriving Asia-Pacific e-commerce market.
Positive Outlook for Q4 and Beyond
The Group maintains an optimistic outlook, anticipating continued strong demand, particularly in premium classes such as Business and First Class.
Advanced bookings for November and December are showing notably higher levels compared to the same period last year. This positive trajectory has encouraged the Group to plan further capacity expansion in the fourth quarter.
Looking ahead to 2024, Lufthansa Group aims to operate at approximately 91% of its pre-crisis capacity levels, demonstrating confidence in the market’s sustained recovery.
Despite ongoing industry challenges, the Group maintains its full-year Adjusted EBIT forecast of 1.4 to 1.8 billion euros, expecting positive results in Q4.
This outlook reflects the company’s resilient business model and successful adaptation to evolving market conditions. It acknowledges the continued need to manage costs effectively in an increasingly competitive global aviation landscape.
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